Bitcoin Steadies Above $61,000 Despite Anticipated Economic Reports and Crypto Market Volatility

• This week, all eyes are on key economic reports that could impact the U.S. economy and the financial markets.
• The spotlight is on the Personal Consumption Expenditures (PCE) report, known as the Federal Reserve’s primary inflation indicator.
• In addition, consumer sentiment and inflation expectations data will captivate investor attention.

This week’s economic data has significant potential to provide insights into the U.S. economy’s trajectory, affecting various market sectors, including cryptocurrencies.

Economic Events from June 24 to 28

The release of consumer confidence data on Tuesday will likely shed light on public sentiment and the status of economic recovery. Yet, the week’s pivotal report arrives on Thursday—the Q1 2024 GDP Growth Annualized (final estimate).

The preceding estimate indicated economic growth tapered to an annualized 1.3%, a sharp drop from Q4’s 3.4%. This final estimate is anticipated to affirm these preliminary figures.

“Market participants are laser-focused on the GDP data as it may signal the onset of stagflation,” noted The Kobeissi Letter in a recent X post dated June 24th.

Key Events This Week:

1. CB Consumer Confidence data – Tuesday

2. New Home Sales data – Wednesday

3. Q1 2024 Final GDP data – Thursday

4. May PCE Inflation data – Friday

5. Fed Monetary Policy Report – Friday

6. Total of 8 Fed speaker events this week

— The Kobeissi Letter (@KobeissiLetter) June 23, 2024

Friday promises to be particularly eventful. The May Core PCE is due for release, and both investors and policymakers will eagerly analyze it. In light of the recent lower-than-expected CPI numbers for May, this report will be crucial for identifying continuing disinflationary patterns.

Additional critical reports set for Friday include May’s Personal Income and Personal Spending data. These metrics offer crucial insights into Americans’ total personal income and consumer expenditure, which can influence central bank policy decisions.

Furthermore, June’s Michigan Consumer Sentiment Index and Consumer Inflation Expectations reports will also be published on Friday. These particular reports give a sense of consumer confidence and long-term inflation expectations, both vital for assessing consumer spending trends and the Federal Reserve’s inflation expectations.

This week, a total of 8 Fed speaker events are also scheduled, adding another layer of complexity to the financial landscape.

Implications for Crypto Market

This week’s loaded economic calendar could introduce significant volatility for risk-sensitive assets like cryptocurrencies.

Overall market capitalization has dipped by an additional 5% in the last 24 hours, reaching a six-week low of $2.35 trillion. The market has lost 11% this month, with a staggering $300 billion flowing out.

Bitcoin experienced a 4% decline, dropping close to $61,000, but sustaining itself above, trading at approximately $61,300 at the time of reporting.

Ethereum encountered more pronounced declines, plummeting to $3,310—a six-week low—in Asian trading on Monday.

Altcoins faced significant losses as well, with Solana (SOL), Dogecoin (DOGE), Shiba Inu (SHIB), and Avalanche (AVAX) hitting this year’s lowest levels over the weekend.

Conclusion

This week’s plethora of economic data, coupled with various Fed speaker events, is expected to significantly influence financial markets, including the volatile crypto sector. Investors should brace for potential market turbulence and stay informed about new economic developments as the week unfolds.